If the MNC has cash inflows in one currency and cash outflows in another currency, the exchange rate risk is lower if the two currencies are Group of answer choices Negatively correlated Highly correlated
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This is because fluctuations in exchange rates can affect the value of the cash inflows and outflows, leading to gains or losses for the MNC. Now, if the two currencies are negatively correlated, it means that when one currency strengthens, the other weakens. In Show more…
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